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Faculty Research Working Paper Series
Ricardo Hausmann
Professor of the Practice of Economic Development
phone: (617)496-3740
fax: (617)496-8753
Welcome Home in a Crisis: Effects of Return Migration on the Non-Migrants’ Wages and Employment
Hausmann, Ricardo, and Ljubica Nedelkoska. "Welcome Home in a Crisis: Effects of Return Migration on the Non-Migrants’ Wages and Employment." HKS Faculty Research Working Paper Series RWP17-015, January 2017.
Abstract
Albanian migrants in Greece were particularly affected by the Greek crisis, which spurred a wave of return migration that increased Albania’s labor force by 5% between 2011 and 2014 alone. We study how this return migration affected the employment chances and earnings of Albanians who never migrated. We find positive effects on the wages of low-skilled non-migrants and overall positive effects on employment. The gains partially offset the sharp drop in remittances in the observed period. The employment gains are concentrated in the agricultural sector, where most return migrants engage in self-employment and entrepreneurship. Businesses run by return migrants seem to pull Albanians from non-participation, self employment and subsistence agriculture into commercial agriculture.
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